The plant will be the company's biggest such facility, and is set to be located on the Padas river, according to Donis Ebin, chief engineer at Sabah Electricity.

“We have been researching a lot on hydro power potential and we have one to two projects in the pipeline,” Ebin tells Recharge.

“The projects will go under scrutiny by the government before we can proceed,” he adds.

The Malaysian utility is also planning to develop a 66MW mini-hydro project in Padas river, and looking to locate more projects along the Liwagu river.

Sabah Electricity, which is already operating a handul of hydro plants, is hoping to increase the use of this renewable energy source in a move away from its carbon-emitting coal-fired facilities.

The company’s proposed 300MW coal-fired power plant in Lahad Datu was recently rejected by the Department of Environment for failing its environmental assessment report.

Environmental groups in East Malaysia’s Sabah state argued against building the facility, saying the location was too close to environmentally sensitive areas.

The coal-fired power plant was proposed to mitigate frequent power outages in the area.

Sabah Electricity deputy chairman Bung Moktar Radin says the development of mini-hydro plants is now needed to feed future power demand.